Two Investments, X and Y, Have Beta Values of 0

question 221

Multiple Choice

Two investments, X and Y, have beta values of 0.1 and 3.0 respectively.Based on this, we can claim that, relative to the market portfolio,

• A)both have more nondiversifiable risk than the market portfolio.
• B)both have less nondiversifiable risk than the market portfolio.
• C)X has more nondiversifiable risk and Y has less nondiversifiable risk than the market portfolio.
• D)X has less nondiversifiable risk and Y has more nondiversifiable risk than the market portfolio.

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Definitions:

Cardiac Cycle

The sequence of events that occur in a complete heartbeat, including contraction and relaxation of the atria and ventricles.

Right Atrium

The right upper chamber of the heart that receives deoxygenated blood from the body and pumps it to the right ventricle.

Systole

Contraction of the heart chambers during which blood leaves the chambers; usually refers to ventricular contraction.

Diastole

The phase of the heartbeat when the heart muscle relaxes and allows the chambers to fill with blood.